Attention LLC Owners – Time is running out to comply with the new CTA requirements!
Did you know that most limited liability companies (LLCs) are subject to a new filing requirement in 2024? Those affected include:
- Single member LLCs not required to file a tax return.
- LLCs created to hold investment property / rental real estate.
- A business operating as an LLC that has fewer than 20 employees.
- Companies, including LLCs, with less than $5 million in gross revenue.
- Entities with little to no activity in 2024.
If one or more of the above apply to your business, you may have to file a report with FinCEN in 2024.
Who needs to pay attention?
Owners, officers, and others with substantial control over LLCs, S corporations, C Corporations, and similar entities.
What is required?
Under the Corporate Transparency Act (CTA), certain companies must file a beneficial ownership information (BOI) report with FinCEN providing specific information regarding the company’s owners, officers, and/or others with control. For more information about the CTA click here.
When is the deadline?
It depends on when the company was formed.
Due date of initial report Applies to
12/31/2024 Any LLC or other company in existence before 1/1/2024
90 days from formation Any LLC / other company created in 2024
30 days from formation Any LLC / other company created after 12/31/2024
In addition to the above, additional reports are due within 30 days of any change in ownership or control, or other information previously reported.
Where to File/Seek Assistance when Filing
Companies may file reports for free directly with FinCEN. If you have any questions about filing requirements, or for more complex reports, it is best to consult with your corporate attorney.
Why does this matter?
There are stiff penalties for noncompliance, including civil penalties up to $500/day for each day the report is late, and criminal penalties up to $10,000 and/or imprisonment.
See FinCEN’s website for more information, including a small entity compliance guide, FAQs, and other reference materials: https://www.fincen.gov/boi
If you are unsure whether this new CTA requirement applies to you, contact your advisor for more guidance about your situation.
